Ukraine industrial output jumps 5% yoy in April

Ukraine’s industrial output jumped 5.2% yoy in April,
advancing from 2.1% yoy in March, due to accelerated growth in manufacturing
and mining, the State Statistics Service reported on May 23. Seasonally
adjusted output increased 0.9% m/m. In 4M19, industrial output increased 0.9%
yoy.

Manufacturing output accelerated 7.4% yoy in April
(after 5.0% yoy growth in March). In particular, output in machinery surged
10.8% yoy (vs. a 1.5% yoy decline in March). In addition, metallurgical
production increased 9.9% yoy (vs. 8.9% yoy growth in March), and food
production rose 6.6% yoy (vs. 7.3% yoy growth in March).

Mining output increased 6.0% yoy in April (vs 1.8% yoy
growth in March). In particular, oil and natural gas output improved 6.3% yoy,
and iron ore production rose 4.6% yoy. Meanwhile, coal production dropped 8.4%
yoy. The supply of electricity and natural gas inched up 0.3% yoy in April.

Regionally, growth was strongest in the Rivne (29.7%
yoy), Vinnytsia (28.6% yoy) and Sumy (24.6% yoy) regions. Declines were
steepest in the Volyn (-6.6% yoy), Zhytomyr (-9.5% yoy) and Kyiv (-5.6% yoy)
regions.

Evgeniya Akhtyrko: Restored
growth in the machinery sector boosted industrial output in April. In addition,
growing metallurgy, which benefits from a favorable situation at the external
markets, encouraged advances in iron ore mining.

We expect industrial output to increase 2.0% yoy in
2019 (vs. 1.6% yoy growth in 2018).